Sunday, January 18, 2009

Black Angus Steakhouse Files Bankruptcy

Jan. 15 (Bloomberg) -- ARG Enterprises Inc., which operates 69 Black Angus Steakhouse restaurants in seven states in the western U.S., filed for bankruptcy protection, citing declining profits due to the economic slowdown in the U.S.

ARG, with headquarters in Los Altos, California, said in its Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Delaware, today that it has between $100 million and $500 million in both assets and debts.

“The debtors’ restaurants primarily are located in some of the areas hardest hit by the mortgage crisis, causing consumers in those markets to cut back on discretionary spending,” Lisa Poulin, the company’s chief restructuring officer, said in a declaration filed with the bankruptcy court.

It is the latest of several casual-dining style chains to file for protection in the last year, including Bennigan’s Steak and Ale restaurants and Buffet Holdings Inc.

ARG had filed for Chapter 11 reorganization in 2004 in Los Angeles and its restructuring plan was approved the following year, according to Poulin, who is a partner in CRG Partners Group LLC, a firm that provides interim management and restructuring advice.

Black Angus, which specializes in black angus steaks, prime rib and seafood, was founded in Seattle in 1964. It employs more than 3,600 people. The company projects revenue of $181 million for 2008, according to Poulin.

The case is ARG Enterprises Inc., 09-10171, U.S. Bankruptcy Court, District of Delaware (Wilmington).